EA Stock Analysis: Electronic Arts | NASDAQ
Electronic Gaming & Multimedia | NASDAQ, USA | Market Cap: 52.382m USD | 12M Return: 38.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 413M
EPS Trend: -62.9%
Qual. Beats: -2
Rev. Trend: -55.4%
Qual. Beats: -2
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Electronic Arts Inc. (EA) is a global video game publisher that develops, markets, and distributes games, content, and services across consoles, PCs, and mobile platforms. Its portfolio spans multiple genres including sports, racing, first-person shooters, action, role-playing, and simulation, supported by live services and subscription offerings tied to major franchises such as EA SPORTS College Football, EA SPORTS Madden NFL, The Sims, Apex Legends, and Battlefield. The company reaches customers through both digital distribution and physical retail, including direct sales to mass-market retailers, specialty stores, and distribution partners. Founded in 1982 and headquartered in Redwood City, California, EA operates as a large-cap company within the Communication Services sector, specifically the Interactive Home Entertainment sub-industry, and has been publicly traded on NASDAQ since 1989.
The interactive entertainment industry is characterized by a dual revenue model combining upfront game sales with ongoing live services, microtransactions, and subscriptions-an approach that supports more predictable, recurring revenue. Major publishers in this space typically rely on flagship franchises and annual title releases to anchor their financial performance.
- EA Sports FC live services boost recurring revenue and margins
- Annual sports franchise sales face weaker engagement cycle
- Share buybacks accelerate as capital return remains priority
| Net Income: 887.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA 2.67 > 1.0 |
| NWC/Revenue: 2.34% < 20% (prev -2.45%; Δ 4.79% < -1%) |
| CFO/TA 0.19 > 3% & CFO 2.55b > Net Income 887.0m |
| Net Debt (-1.06b) to EBITDA (1.49b): -0.71 < 3 |
| Current Ratio: 1.05 > 1.5 & < 3 |
| Outstanding Shares: last quarter (253.0m) vs 12m ago -4.53% < -2% |
| Gross Margin: 78.97% > 18% (prev 79.32%; Δ -0.36% > 0.5%) |
| Asset Turnover: 59.07% > 50% (prev 60.34%; Δ -1.27% > 0%) |
| Interest Coverage Ratio: 30.68 > 6 (EBIT TTM 1.17b / Interest Expense TTM 38.0m) |
| A: 0.01 (Total Current Assets 3.97b - Total Current Liabilities 3.80b) / Total Assets 13.1b |
| B: 0.50 (Retained Earnings 6.61b / Total Assets 13.1b) |
| C: 0.09 (EBIT TTM 1.17b / Avg Total Assets 12.7b) |
| D: 1.06 (Book Value of Equity 6.76b / Total Liabilities 6.37b) |
| Altman-Z'' = 3.46 = A |
| DSRI: 0.92 (Receivables 632.0m/679.0m, Revenue 7.53b/7.46b) |
| GMI: 1.00 (GM 79.32% / 78.97%) |
| AQI: 0.95 (AQ_t 0.65 / AQ_t-1 0.69) |
| SGI: 1.01 (Revenue 7.53b / 7.46b) |
| TATA: -0.13 (NI 887.0m - CFO 2.55b) / TA 13.1b) |
| Beneish M = -3.12 (Cap -4..+1) = AA |
As of July 28, 2026, the stock is trading at USD 209.07 with a total of 2,629,200 shares traded. Over the past week, the price has changed by -0.11%, over one month by +1.96%, over three months by +3.37% and over the past year by +38.10%.
Current recommended Stop Loss: 208.00 (which is 0.5% or 1.3 ATR below the current price).
Electronic Arts has received a consensus analysts rating of 3.71. Therefore, it is recommended to hold EA.
- StrongBuy: 10
- Buy: 0
- Hold: 18
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 205.8 | -1.6% |
P/E Trailing = 59.5157
P/E Forward = 23.9808
P/S = 7.0179
P/B = 7.7442
P/EG = 1.2964
Revenue TTM = 7.53b USD
EBIT TTM = 1.17b USD
EBITDA TTM = 1.49b USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 63.0m USD (from shortTermDebt, last quarter)
Debt = 1.92b USD (from shortLongTermDebtTotal, last quarter) + Leases 63.0m
Net Debt = -1.06b USD (calculated: Debt 1.92b - CCE 2.98b)
Enterprise Value = 51.3b USD (52.4b + Debt 1.92b - CCE 2.98b)
Interest Coverage Ratio = 30.68 (Ebit TTM 1.17b / Interest Expense TTM 38.0m)
EV/FCF = 22.09x (Enterprise Value 51.3b / FCF TTM 2.32b)
FCF Yield = 4.53% (FCF TTM 2.32b / Enterprise Value 51.3b)
FCF Margin = 30.85% (FCF TTM 2.32b / Revenue TTM 7.53b)
Net Margin = 11.78% (Net Income TTM 887.0m / Revenue TTM 7.53b)
Gross Margin = 78.97% ((Revenue TTM 7.53b - Cost of Revenue TTM 1.58b) / Revenue TTM)
Gross Margin QoQ = 83.90% (prev 73.12%)
Tobins Q-Ratio = 3.91 (Enterprise Value 51.3b / Total Assets 13.1b)
Interest Expense / Debt = 1.98% (Interest Expense 38.0m / Debt 1.92b)
Taxrate = 24.83% (293.0m / 1.18b)
NOPAT = 876.5m (EBIT 1.17b * (1 - 24.83%))
Current Ratio = 1.05 (Total Current Assets 3.97b / Total Current Liabilities 3.80b)
Debt / Equity = 0.28 (Debt 1.92b / totalStockholderEquity, last quarter 6.76b)
Debt / EBITDA = -0.71 (Net Debt -1.06b / EBITDA 1.49b)
Debt / FCF = -0.46 (Net Debt -1.06b / FCF TTM 2.32b)
Total Stockholder Equity = 6.25b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.96% (Net Income 887.0m / Total Assets 13.1b)
RoE = 14.19% (Net Income TTM 887.0m / Total Stockholder Equity 6.25b)
RoCE = 15.08% (EBIT 1.17b / Capital Employed (Equity 6.25b + L.T.Debt 1.49b))
RoIC = 9.72% (NOPAT 876.5m / Invested Capital 9.02b)
WACC = 6.98% (E(52.4b)/V(54.3b) * Re(7.18%) + D(1.92b)/V(54.3b) * Rd(1.98%) * (1-Tc(0.25)))
Discount Rate = 7.18% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -94.04 | Cagr: -3.01%
[DCF] Terminal Value 77.97% ; FCFF base≈2.14b ; Y1≈2.45b ; Y5≈3.61b
[DCF] Fair Price = 220.6 (EV 54.3b - Net Debt -1.06b = Equity 55.3b / Shares 250.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -62.86 | EPS CAGR: -19.20% | SUE: -1.53 | # QB: -2
Revenue Correlation: -55.43 | Revenue CAGR: -1.04% | SUE: -1.22 | # QB: -2
EPS current Quarter (2026-06-30): EPS=0.80 | Chg30d=-13.14% | Revisions=-25% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.89 | Chg30d=-21.35% | Revisions=-25% | Analysts=2
EPS current Year (2027-03-31): EPS=5.63 | Chg30d=+0.68% | Revisions=-42% | GrowthEPS=+60.5% | GrowthRev=+3.0%
EPS next Year (2028-03-31): EPS=6.27 | Chg30d=+4.27% | Revisions=-50% | GrowthEPS=+11.3% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: -57% (up=3, down=15)